Volume over margins may weigh on automotive firm Eicher Motors earnings

The volume uptick was led by product interventions at attractive price points and brand activation and marketing efforts

Leading automotive firm Eicher Motors delivered a better-than-expected performance in the March quarter, driven by robust revenue growth. Despite strong volumes, the company fell short on the margin front. 

With ongoing investments in new product development and elevated marketing expenses, margins are likely to remain under pressure in the near term. As a result, earnings estimates have been revised downwards in view of profitability concerns. 

Given the stock’s 15 per cent gain over the past three months and its premium valuations, most brokerages remain cautious about its near-term prospects. 

In Q4, while standalone revenues came in below estimates, consolidated revenues